Chinese Pork Buying Boosted Summer Cash Hog Prices To Record High

Rumors of a surge in Chinese pork buying surfaced in early summer. Official trade data take time to work their way through the statistics system. But the trade data are now available and they confirm those rumors.

Pork exports rose sharply in July, propelled largely by shipments to Asia; China and South Korea in particular. July exports were 386 million pounds, almost 18% higher than a year ago. In July China bought about 44 million pounds of U.S. pork products, more than double the July 2010 volume.

China's pork production is down due to disease outbreaks in 2010 and continued industry exit by small backyard producers. Production is falling at a time when strong economic growth and rising disposable income are boosting pork demand and pork prices in China.

U.S. exports to China will likely top 2010 levels through 2011. Third-quarter U.S. pork exports are expected to be 1.2 billion pounds, up more than 26% from a year ago. Fourth-quarter exports are forecast at 1.3 billion pounds, more than 13% higher than fourth quarter 2010 sales.

Source-wallacesfarmer